SGX’s Bitcoin and Ether Perpetual Futures Draw Fresh Institutional Liquidity
SGX’s bitcoin and ether perpetual futures have gained momentum since their launch two weeks ago, attracting new capital rather than shifting funds from other markets, said Michael Syn, president of the SGX Group.
The contracts, which let traders speculate on crypto prices without expiration, recorded nearly 2,000 lots traded on Nov. 24—equivalent to roughly $32 million in notional value. Cumulative trading has since reached around $250 million. Syn emphasized that the growth reflects new money entering the market, not reallocation from other exchanges or investments. “Like our rupee/CNH futures launches, this creates new markets without impacting OTC volumes,” he said.
Targeting Institutional Participants
Perpetual futures, or “perps,” allow investors to hold positions indefinitely without rolling over contracts. While perps are popular with crypto traders, the lack of regulated Asian markets previously limited institutional participation. SGX aims to establish BTC and ETH perps as benchmark contracts for Asian trading hours.
Meeting Arbitrage Demand
The products cater to institutional demand for basis trading, where traders buy crypto or ETFs in the spot market while hedging with futures to profit from price differences. Syn noted that up to 90% of Bitcoin ETF demand comes from basis traders rather than outright longs.
Conservative Risk Management
Unlike some platforms that auto-deleveraged positions during the Oct. 8 crash, SGX employs conservative margining. “Positions remain steady for basis trades, with no high-leverage auto-liquidations,” Syn said, citing models proven in treasury and FX markets.
Future Plans
While options and altcoin perps may come later, SGX is focused on building liquidity and trust in BTC and ETH perps first. Interest is also growing in S&P 500 and interest-rate perps, but executing the core contracts remains the priority.
